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by imtringued
1482 days ago
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People don't seem to understand that an increase in productivity can result in a concentration of economic activity. Remember group assignments in school? It is often easier to just do the entire work yourself to avoid the cost of coordination. One guy is then doing 80% of the work. The problems start, when it is about paid work. If one very productive guy gets to do the work of five, the employer is going to fire the other four. The government borrows money, so that the unspent savings of the over productive saver are used (oversimplification, saved money is dead and newly borrowed money replenishes the loss) to create jobs for the other four. Our inability to share work forces us to grow the economy to keep everyone busy at work. |
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